Q1 2021 REVIEW AND OUTLOOK - Advisors Capital Management
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2021 REVIEW AND OUTLOOK Q1
INSIDE THIS ISSUE
03 INTELLIGENT CAPITAL 13 BALANCED UPDATE
04 MACROECONOMIC OVERVIEW 14 FIXED INCOME UPDATE
06 SMALL/MID CAP UPDATE 17 GLOBAL GROWTH UPDATE
08 GROWTH UPDATE 17 GLOBAL DIVIDEND UPDATE
09 U.S. DIVIDEND 17 INTERNATIONAL ADR UPDATE
11 INCOME WITH GROWTH UPDATE
Provided Quarterly By
ACM Investment Committee
March 31, 2021
www.advisorscapital.com
10 Wilsey Square
Dr. Charles Lieberman, CIO David Ruff, CFA®
Ridgewood, NJ 07450
David Lieberman Randall Coleman, CFA® Phone: 201-447-3400
Dr. JoAnne Feeney Paul Broughton, CFA®
Kevin Kelly Kevin Strauss, CFA® An Investment Advisory Firm
Dr. Alan Greenspan,
Senior Economic Advisor
Intelligent Capital
| Dr. Alan Greenspan, Senior Economic Advisor
Prior to the emergence of COVID-19, as I have previously indicated, the defining characteristic of the 21st century
was the inexorable aging of its population. Almost a fifth of the population of the industrialized countries of
the world were age 65 and older. In earlier centuries, the vast proportion of the population worked until they
died. Retirement as we know it today was a rare outcome. As a political consequence, retirement benefits,
especially Social Security and healthcare, escalated significantly and are now projected to expand materially
further in the decades ahead.
As a consequence, pension funds and individual century phenomenon like it have, after a period
investors nearing retirement have been seeking means usually measured in a year or longer. At that point,
to sustain secure income further into the future, and longer-term economic forces, especially the aging of
thus the demand for safe long-term assets has risen the population, will then again become the dominant
significantly. For example, the yield on the 30-year US factors in the economic outlook. Some of the pandemic
Treasury bond has declined by well over 1000 basis adjustments that have already been made will, even
points since the early 1980s as demand for the security as the virus disappears, remain a formidable force in
has increased. the economic outlook.
For the United States, over the last half century, the Since 1929 and earlier, gross domestic investment for
sum of gross domestic savings and government social the United States has followed gross domestic saving
benefits payments (as a percent of gross domestic very closely. In recent years, however, investment
product) has remained a remarkably stable 30%. has outpaced domestic saving. This gap was made
What has changed is the makeup of that sum—we can up with money borrowed from abroad, reflecting the
see from the data that the increase in social benefit increase in net foreign saving. This money borrowed
payments has coincided with a nearly dollar for dollar from abroad is reflected in the US net international
decrease in gross domestic savings. Thus we infer investment position, which is now approaching $10
that added spending on entitlement programs is trillion annually.
crowding out gross domestic savings. For Britain and In the future, the international competitive position of
the rest of Europe, the relationships are similar. Most the United States and China will, if anything become
unexpectedly, they are for China as well. a more dominant force on the world scene. From
COVID-19 is obviously a once-in-a-century force that a long-term economic perspective, China is saving
has gripped the global economy. The unfortunate and investing a much larger proportion of their GDP
truth of the matter is we know virtually nothing for than does the US, one of the many reasons they’ve
certain and all the “experts” are expressing not much exhibited such a dramatic rise in real GDP per capita
more than informed guesses on where we will end up. and living standards.
One of the consequences of confronting the COVID-19
crisis has been an increase in federal deficits already
large enough to induce inflation. As they have in Alan Greenspan served five terms as chairman
the past, federal budget deficits that are looming of the Board of Governors of the Federal
in our future will increase unit money supply which Reserve System from August 11, 1987, when
inevitably increases the rate of inflation. There is little he was first appointed by President Ronald
change in my long-term outlook, which ultimately will Reagan. His last term ended on January 31,
be confronted with the inflationary increase in the 2006. He was appointed chairman by four
impacts of rising unit money supply on inflation. different presidents.
At some point, the pandemic will fade, as all past
2021 REVIEW AND OUTLOOK | Q1 P3
Macroeconomic Overview
The economy is now in full sprint, after being “Off to the Races”, as we wrote a month
ago. Payroll jobs surged by 1.07 million in March, including upward revisions to prior
months, and additional mega-sized jobs gains are likely in the coming months, as
vaccinations continue to roll out rapidly and the economy reopens. Consistently, stocks
had a terrific month with the S&P gaining 4.2%, while bonds got crushed, as we’ve been
warning, with the 10-year Treasury soaring 81 basis points in yield (admittedly even
faster than we anticipated). We expect all of these trends to continue in the second
quarter.
The macro story is actually quite straightforward. As vaccinations inoculate ever larger
fractions of the population, governments will permit more businesses to reopen, and
people will be anxious to get back to their lives. This is evident in a very wide range
of economic statistics. For example, it was recently reported that almost 4 million
doses were administered in a single day. Age limits to qualify for vaccination are being
reduced rapidly across the nation, even as vaccine supplies ramp further. Nearly one-
Dr. Charles Lieberman
CO-FOUNDER third of our total population has already received one dose and nearly one fifth is fully
CHIEF inoculated (and more are protected when taking account of those who have recovered
INVESTMENT OFFICER
from Covid).
Activity is rising towards normal, even if it isn’t there quite yet. TSA checks already
exceed 1.5 million daily and airlines report that bookings are rising sharply. Delta
Airlines is now selling middle seats again, the last airline to do so, and more airlines are
recalling pilots and bringing parked planes back into service. Gasoline consumption is
nearly back to pre-pandemic levels and retail sales are now higher. Attendance is rising
at restaurants, bars, gyms and spas, the last places we expect people to be comfortable.
While demand is strong, production increases are being constrained by a lack of workers
Dr. JoAnne Feeney
and supply shortages, with autos a notable example. It will take months, if not quarters,
PARTNER to work out all the kinks in the supply chain, but the economy will enjoy very strong
PORTFOLIO MANAGER
ongoing impetus to growth from backlogged demand. In addition, the recent $1.9
trillion fiscal stimulus package will add gasoline to the fire, with a sizable infrastructure
package still looming, and monetary policy still adding billions in liquidity to the
financial markets each month.
It is entirely appropriate to wonder if it is all too much, too quickly. The 6.0%
unemployment rate reported for March is likely to fall below 5% by the end of the year
and the inability of firms to hire as quickly as they wish could push up labor costs and
inflation. Some rise in inflation is expected because of base effects. In March and
April 2020, inflation was extremely soft, reflecting the shutdown of large swaths of the
economy. So, year over year comparisons will soon become quite unfavorable. This
“surge” in inflation is widely understood and the Fed has stated it will prove to be
temporary. And, the Fed might be correct. But what if it masks a more general upward
pressure on inflation because of the robust expansion? That won’t become clear until
the second half of the year when these base effects die out.
Monetary policy is still focused on promoting a rapid recovery. The Fed’s objectives
have changed and they are now seeking definitive evidence that inflation will remain
consistently above 2%, since it has been below their objective for a long time. The
Fed suggests it knows how to rein in inflation when that time comes. But having lived
through the high inflation period of the 1970s, I recall all too well that high interest
rates for a protracted period of time were needed to quell the inflation inferno that had
2021 REVIEW AND OUTLOOK | Q1 P4
been unleashed. With fiscal and monetary policy highly focused on promoting a very
vigorous recovery and with government plans to introduce major new social programs
second only to Johnson’s Great Society, the risks seem mostly one-sided towards higher
inflation.
The investment implications of current economic conditions for markets are as
positive for stocks as they are negative for bonds. The strong economic recovery will
be evident in corporate earnings reports, which are beginning to emerge for the first
quarter. Estimates are mostly being revised higher and we expect stocks to perform
well following a 7% gain in the S&P in Q1. In contrast, such widespread evidence
of economic strength is likely to hurt bond prices. TLT, the long-term Treasury ETF,
declined over 14% in value in the first quarter. Even with the recent rise in interest rates,
10-year Treasuries yield only 1.7%, still well below the Fed’s inflation objectives. We
have carefully positioned for cyclically sensitive stocks to perform especially well, while
keeping our bond maturities short to protect against rising interest rates.
INVESTMENT PHILOSOPHY + STRATEGY
Founded in 1998, ACM views the markets with a two tiered process,
utilizing a top-down view of the business cycle, coupled with a bottom-up,
fundamental value based analysis.
2021 REVIEW AND OUTLOOK | Q1 P5
Small/Mid Cap Composite Update
The ACM Small/Mid Cap portfolio returned 2.41% net of fees for the first quarter 2021.
The benchmark Russell 2500 gained 10.93%. The reopening trade, that is, companies
most leveraged to the restoration of economic activity after the pandemic, posted the
strongest gains. This includes high beta, or those companies exhibiting higher financial
leverage, lower profitability, and less cash generation. The highest quartile of beta in the
Russell 2500 popped 16.55% versus a small loss of 0.11% for the lowest beta quartile.
Our focus on higher quality companies with lower levels of debt, better profitability
measured by return on invested capital, and greater cash generation dragged on the
ACM Small/Mid Cap strategy performance for the quarter. We don’t expect leadership
for these less profitable, weaker balance sheet companies to continue.
Benchmark Return Analysis
Optimism regarding fading impacts from the pandemic helped cyclical sectors
registered double-digit gains for the quarter. Energy (+38.77%) led followed by
Consumer Discretionary (+21.38%), and Financials (+18.63%). Price increases for crude
oil and interest rates boosted Energy and Financials, respectively. Several categories of
Consumer Discretionary contributed to the gain including Household Durables
(+22.16%), Automobiles (+19.27%), as well as Hotels, Restaurants, and Leisure(+17.05%).
Unsurprisingly, given the market’s reopening party, defensive sectors lagged. Health
Care (-0.15%) failed to register a gain. Information Technology (+1.33%) and Utilities
(+3.13%) managed smaller returns.
Little differentiation existed between Large Caps (+12.11%), Mid-Caps (+10.22%), and
Small Caps (+12.11%) for the quarter but Micro Caps (-3.74%) failed to participate in the
advance. Notably, large cap companies account for more than 24% of the Russell 2500
Index. This benchmark is supposed to represent small and mid-sized company
performance.
Portfolio Highlights
Best Sectors Consumer Staples (+17.58%) Real Estate (+12.66%)
Worst Sectors Information Technology (-17.63%) Communication Srvs(-3.47%)
Best Stocks Penumbra (+51.77%) Evans Bancorp (+25.18%)
Worst Stocks Guidewire Software (-21.05%) Q2 Holdings (-20.81%)
Medical device maker, Penumbra, surged early in the quarter. Although the company
provided encouraging guidance earlier in January at a notable healthcare conference,
much of the price appreciation appeared to be due to the liquidation of short positions
by short-term traders. As long-term fundamental investors we try to avoid investments
experiencing such heightened volatility, and believe the positive price move ran ahead
of fundamental improvement in the company’s earnings outlook. Hence, we sold the
position. Penumbra gained 62.44% or 56.92% annualized from original purchase in
December 2019. Western New York-based Evans Bancorp announced a dividend hike
and new share buyback program during the quarter. The bank appears to be executing
on its cost and revenue synergies plan after acquiring FSB Bancorp. Guidewire provides
software solutions for the insurance industry. Results were solid but the outlook
disappointed investors. The company is at an awkward stage in its efforts to transition
from a licensing model to a subscription model. Q2 Holdings reported earnings missing
2021 REVIEW AND OUTLOOK | Q1 P6
expectations, but the impact resided in a customer impairment and accounting change
in its lending unit. The fundamental business model remains intact, and new customer
signings appear to be accelerating.
Key Trades During the Quarter
Trades during the quarter included purchases of Accolade, AtriCure, Evercore, and
Exagen. Sales included Penumbra, RealPage, PRA Healthcare, and World Fuel
Services. RealPage and PRA Healthcare are being acquired by Thoma Bravo and ICON,
respectively. Both have little appreciation potential to their deal price and we sold the
positions. Aviation and marine fuel distributor, World Fuel Services did an admirable job
controlling expenses in the difficult 2020 where aviation fuel demand slumped, but the
recent rally may reflect an overly optimistic aviation industry outlook. The U.S. recovery
appears on track but lockdowns continue in Europe. Ergo, we don’t look for the all-
important business traveler to return to pre-pandemic levels. With the stock already
approaching 2019 levels we believe better opportunities lie elsewhere.
Accolade provides a cloud-based AI software solution combined with online health
assistants to help self-insured companies reduce healthcare costs. The centralized
workplace-benefit platform provides an easy-to-use interface that helps employees
choose the right treatment and avoid unnecessary costs, e.g., calling for an ambulance
when a telemedicine consultation would suffice. Human resource departments love the
tool to organize and present workplace benefits and its integration will facilitate cost
saving trends like telemedicine. We believe the company is ideally positioned to help
companies stem the rapidly growing cost of U.S. healthcare, growing in excess of 6% per
year and which, according to the Kaiser Family Foundation, averages $10,637 per capita
per annum, almost double the cost of comparable countries.
AtriCure (ATRC) provides surgical devices surgeons use to treat atrial fibrillation or
irregular heartbeat. Afib can lead to blood clots, stroke, heart failure, and other heart
ailments. This is a serious and growing medical problem affecting an estimated 33
million people worldwide. Not currently addressed in standards of care, the cost
of Afib to the U.S. healthcare system totals $26 billion per year. Afib is typically first
addressed through drug treatment but a longer-term more effective solution requires
procedures using ATRC’s ablation and other devices. ATRC provides both open-heart as
well as more minimally invasive solutions. Despite its relatively small size the company
has strong market share in this business and should see rapid growth with ablation
procedures moving from “reasonable” to “recommended” status by The Society of
Thoracic Surgeons
Exagen (XGN) provides products to diagnose and monitor patients of autoimmune
diseases, a market the company estimates affect 7% of the U.S. population or 24 million
people. XGN provides a superior test to current standard of care for several hard-to-
diagnose diseases including lupus, rheumatoid arthritis, autoimmune thyroid, and
Sjogren’s syndrome. With a total addressable market of $5 billion, and current annual
revenues of $42 million, the growth trajectory should be impressive.
Independent investment bank, Evercore (EVR), should benefit from the increased
merger and acquisition activity engendered by the vaccine rollout. The company’s M&A
advisory service enjoys a sterling reputation and exhibits an extensive network without
the conflict of interest inherent with the larger brokerage firms. This suggests EVR will
continue to garner an attractive share of this highly lucrative business.
2021 REVIEW AND OUTLOOK | Q1 P7
Growth Composite Update
Macro/Portfolio notes
Portfolio notes:
ACM’s Private Growth Composite was up in 1Q by roughly 7.6% (gross), ahead of the benchmark.
Longer term performance is also tracking ahead of the benchmark at 1-year and 5-year
intervals and is tracking roughly in line at the 3-year interval. Note that performance
reflects the strategy’s major overhaul in spring of 2016 towards data center, cellular,
cybersecurity, life sciences equipment, and other secular growth end markets.
Outperformance in 1Q was led by our selections in Consumer Discretionary (Six Flags
(SIX), Lennar Corp (LEN), Borgwarner Inc (BWA)) and Consumer Staples (Darling
Ingredients (DAR), Caseys General Stores Inc. (CASY)). Laggards in the quarter were Info
Tech (Stoneco Limited (STNE), Q2 Holdings (QTWO), nCino Inc. (NCNO)) and Industrials,
where we were underexposed to conventional industrials involved in infrastructure.
While it is perhaps easy to understand the drivers behind Consumer Discretionary as the
economy reopens, less obvious are the opportunities for growth in Consumer Staples.
Growth portfolios are not known for being overweight in staples (as we are), but our
selections have unusual growth potential. Darling Ingredients (DAR), for example,
benefits from the continued global rise in protein (i.e., meat/poultry/pork) consumption,
as that drives its rendering business, but it has also seen a significant boost over the last
year from its green diesel exposure (through its JV with Valero). As a supplier of used
cooking oil to this effort, DAR is enjoying the rise in demand for more environmentally
friendly fuels. Government support has been in place for several years and is likely to
expand. Darling and Valero are building new production facilities, so we expect more
earnings growth ahead.
Our selections in Info Tech moved in two different directions last quarter. As the
reopening trade boosted banks and energy, investors moved away from some of last
year’s winners in financial technology (FinTech-software behind mobile banking, digital
payments, etc.). So, while NXP Semiconductors (NXPI) and Zebra Technologies (ZBRA)
both enjoyed more than 25% appreciation, this was more than offset by 20% plus
declines in STNE and QTWO.
Fortunately, we completed a thorough rebalancing of client accounts in Growth at the
beginning of January. We trimmed some of last year’s outperformers, to bring positions
in line with our buy list target weights, and added to some of last year’s weaker stocks.
This meant, for example, that STNE positions were smaller than they otherwise would
have been which reduced the negative impact of that stock’s decline on portfolio
performance. We also increased exposure to BankUnited (BKU-a Florida mostly digital
bank) in anticipation of a banking rebound (BKU was up 27% in 1Q). So, while taxable
accounts will face consequences of additional realized gains, the additional performance
should more than offset those. In addition, we will, as usual, work to offset those realized
gains with tax loss harvesting, but in doing so, we will be wary of being out of a position
at a time when appreciation may be material.
Recent Changes (buy/sell/trim/add):
• We bought BioNTech (BNTX) in late March, after the stock had pulled back over 20%
from its mid-February high. As most are aware, BioNTech’s messenger RNA (mRNA)
technology underlies the Pfizer COVID-19 vaccine. The appeal of the stock, however,
lies more in the future developments of mRNA vaccines and therapies for cancers and
2021 REVIEW AND OUTLOOK | Q1 P8
infectious diseases. Like CRISPR Technologies (CRSP added in February), BNTX has
developed a platform for new therapeutics and the COVID-19 vaccine allowed the
company to prove the potential of its approach. The breakthroughs which made the
vaccine possible can be carried into new vaccines and therapeutics for other diseases.
In the meantime, the COVID-19 vaccine profits are generating substantial cash flow to
fund research and development of the new vaccines. It could also see upside, relative
to the expected sharp decline in sales and profits from the COVID vaccine, if booster
shots are required going forward.
• After trimming STNE in January, we added to the position at the end of March, after its
sharp 1Q decline.
12-Month Forward P/E:
• 19.24
• S&P 500 at 21.87
U.S. Dividend Composite Update
The ACM U.S. Dividend portfolio gained 4.75% net of fees during the first quarter. The
benchmark S&P 500 measured 6.17% over the three-month period. Higher beta names
or companies with greater economic cyclicality and weaker balance sheets boosted the
S&P 500 result. For example, the S&P 500 High Beta Index surged 22.69% in the quarter
while the S&P 500 Quality Index advanced 5.55%. The S&P 500 Cyclicals (+17.93%)
trounced the low cyclical S&P 500 Low Volatility Index (+3.75%).
Benchmark Return Analysis
Sectors with greater sensitivity to the economic cycle performed best in the first quarter
2021. Energy (+30.31%) and Financials (+15.99%) repeated their fourth quarter 2020
top ranking, benefiting from rising oil prices and interest rates, respectively. Industrials
(+11.31%) followed led by Capital Goods (+12.95%). More defensive sectors struggled
to keep up. Consumer Staples (+1.14%), Information Technology (+2.00%), and Utilities
(+2.79%) ranked at the bottom of sectors returns for the three-month period.
Portfolio Highlights
Best Sectors Energy (+25.80%) Financials (+14.76%)
Worst Sectors Real Estate (-0.49%) Communication Services (+1.48%)
Best Stocks Chevron (+25.80%) Truist Financial (+22.71%)
Worst Stocks Qualcomm (-12.53%) Equinix (-10.14%)
Consistent with the sector performance leadership the primary contributors were from
Energy (Chevron) and Financials (Truist Financial). These companies participated in
the “cyclicals rule” theme for the three months. Qualcomm slipped after disclosing the
semiconductor shortage will create supply chain constraints impacting the first half 2021
results. We don’t believe the fundamental long-term investment thesis is impacted.
Equinix reported disappointing earnings and we note free cash generation appears to be
elusive for the company.
2021 REVIEW AND OUTLOOK | Q1 P9
Key Trades During the Quarter
Trades during the quarter included purchases of Pool Corporation, QTS Realty, TE
Connectivity, Wells Fargo, and Zoetis. Sales included Equinix, Merck & Co, Verizon
Communications, Bank of America, and Masco Corp.
The QTS position replaced Equinix. Data Center company Equinix’s stock price fell after
it reported earnings. The company reported continued top line growth and seems to
be at the center of the coming data traffic explosion driven by 5G, cloud services, AI,
Internet of Things, and autonomous driving cars. Indeed, telecom carriers, cloud service
providers, and other entities gain connectivity efficiencies using EQIX to host their
servers and equipment. That said, we think it is notable that despite the company’s
impressive scale, Equinix is still not free cash flow positive due to ongoing capex spend.
Thus, we sold Equinix and substituted with QTS, also in the data center space, but with
a different business model and smaller geographical footprint. This lesser geographical
expansion and more prudent capital spend has allowed QTS to generate free cash and
post industry-leading returns on invested capital.
Wells Fargo replaced Masco and Bank of America. Masco did well in the current strong
housing market. The home improvement and building product company benefited
from stimulus-driven momentum in home remodeling and repair, but we doubt the
sustainability of this spend even with more stimulus. After several years enduring
negative headlines from lack of internal controls by previous management. Wells
Fargo, appears to have effectively put in place procedures needed to fix its regulatory
compliance and operational systems. Combined with a necessary overhaul of its
corporate culture, the task for management has been monumental, especially
considering the 2020 economic climate where banks generally incurred large loan
loss provisioning and earned lower margins with the interest rate collapse. At Wells,
however, we’re seeing successful steps in the right direction with the latest earnings
reflecting a 6.4% return on equity and importantly, management comments on a
pathway towards 15% ROE through efficiency initiatives. We note the bank still has
a premier asset gathering franchise, impressive branch network system, quality loan
portfolio, and loyal customer base. Trading at less than 1x tangible book value, or
significantly less compared to most other big banks like Bank of America, the price gain
could be extensive with good execution.
Verizon’s additional spend for Spectrum at $45.5 billion was much higher than expected
and will add to the telecom’s massive debt load, currently at $150 billion. Although VZ’s
wireless business should produce stable revenue and cash flow, the debt metrics have
moved beyond what we consider to be a high-quality balance sheet and our mild growth
expectations suggest a relatively poor return on the additional spend.
Merck continues to experience growth from its blockbuster drug Keytruda, but the
pharmaceutical giant’s reliance on this single drug continues to grow due to recent
divestitures as well as mature drug revenue decline acceleration. With the risk/reward
ratio deteriorating we sold the position.
Pool’s former CEO liked to say that “the earth is covered 70% by water and Pool Corp
does not think that is nearly enough”. The company certainly is in an ideal position to
benefit from increased swimming pool construction. Pool has a strong competitive edge
in pool supplies, distributing 200,000 products for 2200 suppliers through 302 U.S. sales
centers controlling close to 50% of pool equipment/supplies distribution nationally.
With the industry fragmented in both supply and maintenance (that pool guy/gal can
only cover so many pools), the company enjoys a position to extract greater economic
profits. This explains the company’s return on investment capital or ROIC exceeding
30%. Receiving a boost from the pandemic-forced stay-at-home phenomenon, 2020
2021 REVIEW AND OUTLOOK | Q1 P10revenue and earnings grew 23% and 44%, respectively We look for continued propitious
free cash generation accompanied by double-digit cash dividend growth and regular
share buybacks.
The largest electrical connector company in the world, TE Connectivity, supplies
specialized connectors, sensors, and other components to customers around the
globe. Although headquartered in Switzerland, the operational base is in Pennsylvania.
TE’s products are appreciated for their reliability and performance, even in harsh
environments. The company’s competitive edge lies in its innovation and strong
customer relationships. TE should deliver solid growth in its transportation segment
as well as other industries including aerospace and defense, industrial robotics,
communications, and data centers.
Split off from Pfizer in 2013, Zoetis, easily outpaced the parent’s growth and has become
a juggernaut in the animal health business producing everything to keep livestock
and pets healthy. Products range from feed additives to parasiticides to vaccines and
pharmaceuticals to dermatology treatments. Yes, even animal biologics are part of
Zoetis’ medicine cabinet. Also, pet ownership is in a solid uptrend. The company has
valuable intangible assets including an extensive patent portfolio and a strong brand.
This brand reputation is an important attribute since livestock producers are trusting
Zoetis’ product to treat their herd of animals, a significant investment. Pet owners
also favor Zoetis’ brands. Afterall, Scruffy has become a member of the family, right?
Zoetis should benefit from the increased pet population engendered by the pandemic.
The resultant increased scale should boost margins. Industry-leading research and
development follows this increased profit, filling Zoetis’ product pipeline. This R&D
edge should keep the company at the forefront of creating new innovative animal care
solutions.
Income with Growth Composite Update
The stock market enjoyed a solid first quarter, despite a rise in Covid cases and assorted
jurisdictions imposing shutdowns to stem spread of illness. Investors looked ahead to
widespread distribution of vaccines and a return towards normal. In that context, stocks
advanced, but investors shifted towards value and away from growth, which worked
very nicely for Income with Growth, since it is totally income and value oriented.
Our benchmark enjoyed a spectacular quarter. The 80% SPYD/20% IBOXX High Yield
surged 13.5% over the quarter and 3.2% in the month of March. This reflects the solid
increase in stock prices and a modest gain in bonds, but also the very notable shift from
growth into value. To see the effect of the mix shift, the SPYD rose about 2.5 times as
much as the S&P 500, which still rose 6.17% for the quarter. This weaker performance for
the S&P reflected declines in many technology or pandemic beneficiaries in Q1. The
bond market was little changed, as the IBOXX High yield index eked out a gain of 0.58%.
(The S&P High Yield Index includes 60 of the highest yielding stocks in the S&P 500, so its
purpose is highly aligned with Income with Growth.)
The Private Income with Growth composite returned 11.2% (net of fees) for the quarter
and 4.3% for March, while the Model Income with Growth returned 10.5% and 3.8% for
the quarter and March, respectively.
The bond market rallied in March, offsetting losses in January and February, hence
the modest, positive 0.58% return for the quarter. The Barclays Aggregate Bond Index
didn’t fare quite as well, as it is dominated by Treasuries and other very high-quality
bonds that pay low coupons. So, the interest income earned did little to offset the price
2021 REVIEW AND OUTLOOK | Q1 P11declines, hence the better performance of the IBOXX High Yield. We did slightly better
still, as our defensive positive gave us some added protection against rising rates and
our higher coupons helped provide a positive return.
On the equity side, energy was seen as a prime beneficiary of the reopening of the
economy and the benchmark ETF exploded with a 30.8% return. We tend to stay away
from the exploration and producing companies, because they are distinctly riskier, but
they gained the most this quarter. In contrast, pipelines and midstream ETFs typically
gained around 22% for the quarter and the “safest” companies provided the lowest
returns. Among our holdings, Kinder Morgan (+24%), Valero (+28.5%), Chevron (+25.8%),
and MPLX (+21.8%) all stood out. Companies, like Cross America (+11.3%), Magellan
Midstream (+4.8%) and Enterprise Product Partners (+14.9%) lagged. We sold Pembina
and bought Antero Midstream.
Financial companies also enjoyed a spectacular quarter. The Financial ETF gained
16.0%, while the Mortgage REIT ETF gained 13.1%. Among our financial holdings,
Wells Fargo soared 29.9%, Lincoln Financial gained 24.8%, and Prudential by 18.6%.
Starwood more than doubled its benchmark, gaining 30.7%, but Ladder also rose
22.7%, and New Residential was in line with the bench, gaining 13.2%. American Capital
Agency lagged slightly at +9.8% for the quarter. These positions were a key part of the
strategy’s strong performance for the quarter.
Not surprisingly given the strong performance of financial companies, BDCs and REITs
also did very well, with their benchmarks providing total returns of 20.9% and 10.3%,
respectively. Again, the riskiest companies performed the best, which we mostly avoid.
Nonetheless, our BDC holdings of Blackrock TCP surged 29.9%, Pennant by 30.1%,
Hercules by 17.7% and Ares lagged the pack at 15.5%. Among our REIT holdings, KIMCO
was a standout at +26.6%, while Federal Realty +21.7%, SL Green +17.4%, Lamar +15.7%
and LTC Properties +12.4% all outperformed. W.P. Carey at +3.0% was a notable laggard.
We bought some Simon Property Group during the quarter,
Other holdings, including Fortress Infrastructure +22.6%, DOW +17.7%, Vodafone
+14.8%, IBM + 9.7%, and Taiwan Semiconductor +14.1% had very good quarters. Our
utility holdings were distinct laggards. The utility ETF provided a +4.0% return for the
quarter, but renewable energy, where we are concentrated, lagged behind. Brookfield
Infrastructure outperformed +12.2%, but Brookfield Environmental +2.4%, Atlantica
Infrastructure -2.8% and Clearway at negative 10.9% were laggards. We see utilities as
among the more vulnerable industry groups to rising interest rates.
Yields:
• Taxable (K-1 permitted): 5.7%
• Tax-exempt (no K-1): 5.7%
• Model: 5.6%
• SPYD (30-day SEC yield): 4.4%
Forward P/E:
• Income with Growth: 13.47
• SPYD 14.87
2021 REVIEW AND OUTLOOK | Q1 P12Balanced Composite Update
Private Balanced remains well diversified to areas of the market we feel would deliver the
best combination of appreciation and income over the next 3+ years.
We continue to include positions in four areas of the market: secular growth
opportunities, economic recovery plays, defensive positions, and COVID-central stocks.
COVID-central are now becoming names to hold, though selectively. We are employing
a mix of all investing areas to create appreciation potential and income (there’s always a
tradeoff between those two), while trying to minimize risk.
Clients will have seen returns in Balanced portfolios of roughly 5-7% in 1Q, and the exact
amount will depend on the equity-fixed mix and the choice of income exposure (sleeves
T3, T4, or T5). This compares to the S&P 500’s total return (including dividends) of
6.1%, the high-dividend S&P index’s return of 16.7%, and the fixed income benchmark’s
decline of 1.2%. Note that because all three sleeves are income oriented, with dividend
yields well above that of the S&P 500, the portfolio still includes several positions that
were down double-digits in 2020 and which we believe still have among the greatest
potential for gains in 2021.
Appreciation in Balanced portfolios was led by our selections in Consumer Discretionary.
Williams Sonoma (WSM) was a favorite during COVID’s stay-at-home period as
consumers added to kitchen supplies, furniture, and accessories. The company also
stands to benefit from store reopenings, though, and has continued to deliver results
above expectations. General Motors (GM) is benefiting both from a resumption in
demand and greater supply, but also from its recent announcements related to its pivot
towards electric vehicles (and the support that fiscal spending should provide). Energy
was another strong contributor in 1Q as oil prices rebounded and volumes rose. We
should expect volumes to continue to rise as manufacturing and travel both accelerate
through 2021. Financials also delivered last quarter as all holdings rose by double-digit
percentages. These were led by MetLife (MET) and Citigroup (C) as rising interest rates
boosted their outlooks. In T4 and T5, we saw sharp rebounds in Ladder Capital Group
(LADR) and New Residential Investment Corp (NRZ), both exposed to the improving view
on real estate.
Underperformance came in Health Care where concerns reemerged regarding drug
pricing once again. The new administration is contemplating new ways to manage
health care costs and pricing of pharmaceuticals could come under greater scrutiny. This
risk merely receded last year, but we see our selections able to offset pricing headwinds
through ongoing drug discoveries. This sector ended higher, but just barely, as strength
in Bruker (BRKR) and Agilent (A), both providing analytical tools to the life sciences, saw
strong appreciation. And while Info Tech was weak, we did see outperformance in Zebra
(ZBRA) as its supply chain equipment continued to benefit from strong online retail
and vaccine shipments, and in Seagate (STX) and Cisco (CSCO), as cloud computing
installations saw additional growth in activity. Unfortunately, Qualcomm (QCOM), Apple
(AAPL), and PayPal (PYPL) all pulled back as investors rotated away from some of last
year’s winners towards the reopening plays. Note that all three have since risen off their
recent lows.
The fixed components of Balanced strategies outperformed their benchmarks as our
careful selections kept the duration of our bonds shorter than the market benchmark’s
average; Fixed income portfolios in T3 accounts, for example, were down roughly 1.3%
net of fees, while the benchmark was down 2.2%. This posturing, plus our selection
2021 REVIEW AND OUTLOOK | Q1 P13of credits that benefit from the economic recovery currently underway, enables us to
outperform when interest rates are rising.
We continue to carefully select individual bonds and preferreds to reach our target
ranges for the fixed income portions of T3, T4, and T5. Estimated yields for a new
account in T3 is now in the range of 2.4% to 2.5% versus the benchmark yield of 1.5%.
Note that as the percentage of fixed in a balanced portfolio climbs, we need to add more
positions and these will generally come with lower yields.
Changes (buy/sell/trim/add):
No additional major changes to Private accounts in March.
Gross Estimated Yields (these are for a 70:30 equity:fixed mix):
• Fixed T3: 2.4-2.5%; Equity T3: 2.6%
• Fixed T4: 3.6-3.8%; Equity T4: 3.7%
• Fixed T5: 4.15-4.35%; Equity T5: 4.3%
Balanced Fwd P/E:
• 17.51
S&P 500 Fwd P/E:
• 21.87
Fixed Income Update
What happened in the fixed income market in 1Q’21?
The first quarter of 2021 was a mixed quarter for fixed income. Treasuries and high-
quality investment grade bonds were very weak as interest rates increased significantly
resulting in negative returns especially for high duration/long-dated securities. On the
other hand, high yield bonds were strong up almost 1% in the quarter as the economic
outlook improved coinciding with the stock market up over 6%. The Preferred index
returned approximately 0.5% in the quarter, but performance varied substantially across
names given the significant differences between securities.
The ACM Fixed strategy outperformed by almost 1% in 1Q’21 (on a net basis). The
outperformance was driven by selecting credits that benefit from the economic recovery
currently underway, as well as from having a lower duration (interest rate exposure)
than the benchmark. The strategy was down approximately 1.3% net, versus the
benchmark which was down almost 2.2%.
It is worth noting that the average investment grade bond was down over 4.6% in 1Q’21.
This is because the average investment grade bond outstanding has a maturity of 12
years resulting in substantial interest rate exposure.
Why was 1Q’21 a mixed quarter? Why were investment grade bonds weak?
Interest rates increased because economic fears are declining and the outlook for an
economic recovery is improving. When fear is high, many investors hide in Treasuries
2021 REVIEW AND OUTLOOK | Q1 P14for safety which pushes down Treasury yields (remember Treasuries have no credit
spreads). Rates tend to decline when the economic outlook is extremely negative, and
the prospects of growth and inflation become less likely. However, several stimulus
packages combined with the Fed actions and an accelerated vaccine rollout are helping
the economy to recover. Recent economic data is showing jobs, confidence, and
spending are trending positively and with an eventual return to pre-Covid levels now a
realistic possibility.
Last year Treasuries and high-quality investment grade bonds benefitted strongly
from the 10-year Treasury yield declining from 1.92% at the end of 2019 to 0.91% by
the end of 2020. This resulted in the average investment grade bond returning almost
9.9% in 2020, but this return was almost completely driven by interest rates. Given the
economy is solidly recovering, most of the interest rate declines have reversed. In 1Q’21,
the 10-year Treasury bond increased 0.83% to 1.74% by the end of March. While credit
spreads did tighten somewhat in 1Q’21, credit spreads are already relatively low and
could not possibly tighten enough to offset large interest rate increases. To help put the
importance of rates into perspective, since the beginning of 2017, interest rates have
accounted for 60% of investment grade bond yields with the other 40% composed of
credit spreads (yield = interest rate + credit spread). Interest rates tend to be a higher
proportion of yields for high quality investment grade versus the BBB / BBB- universe in
which ACM tends to focus.
For primarily the same reasons that interest rates increased, high yield bonds performed
well. As a reminder, high yield bond returns are substantially more sensitive to credit
spreads and economic outlook rather than interest rates. The vast majority of the yield
on a high yield bond is associated with the credit spread and to a much lesser extent the
interest rate.
Preferreds, which can be both investment grade and high yield, had a solid quarter.
Generally, high yield preferreds outperformed investment grade preferreds, as would be
expected given high yield security performance is more driven by credit spreads rather
than interest rates (as discussed above).
Where are yields now?
In early 2021, the significant interest rate increases have resulted in higher investment
grade bond yields. However, investors could earn significantly higher yields using the
ACM approach of focusing on BBB / BBB- rated investment grade bonds. These securities
provide additional yield and potentially lessen the interest rate sensitivity. BBB / BBB-
rated bonds are often less interest rate sensitive because as the economy improves
these companies benefit which can lead to credit spread tightening. ACM does the credit
research to distinguish which BBB / BBB- credits are attractive and hence worth owning.
We also purchase select investment grade preferreds that offer incremental yield on an
attractive risk-adjusted basis.
On the other hand, the AA and A rated corporate credits, do not typically benefit much
from an improving economy as these credits are typically seen as so safe the economic
outlook is much less important. Consequently, they also provide much lower yields due
to tight credit spreads, making them more interest sensitive.
2021 REVIEW AND OUTLOOK | Q1 P15Please see below to appreciate the current differentiation in investment grade yields
between AA, A and BBB rated securities. We think investors that own AA and A rated
paper, often do not appreciate how low a yield they are earning as the coupons and
therefore, the current cash flow on a fixed income portfolio are much higher than the
actual return or yield being earned. (Please see the Fixed Income Bonus Feature below
for an explanation)
***Important: Note these yields are based on a large basket and not necessarily
indicative of the yield of our strategies.
Yield on basket 5 yr. Investment Grade bonds
5 year Bonds 5 year Bonds 12/31/17 12/31/17 12/31/18 12/31/19 12/31/20 3/31/21
usgg5yr index Treasury 2.21% 2.51% 1.69% 0.36% -79% 0.94%
IGUUACO5 Index AA+/ AA / AA- 2.54% 3.24% 2.00% 0.64% -68% 1.19%
IGUUACO5 Index A+/ A / A- 2.68% 3.42% 2.15% 0.78% -64% 1.33%
IGUUBCO5 BVAL Index BBB+ / BBB / BBB- 3.04% 3.98% 2.53% 1.04% -59% 1.62%
IGUUC505 BVAL Index BB+ / BB / BB- (High Yield) 4.37% 6.20% 3.54% 2.97% -16% 3.34%
Source: Bloomberg. LLC.
Note: Please note we quote benchmark yields which are a based on a large basket of bonds and not necessarily indicative of the yield of our
strategies.
What have we done and where do we go from here?
During the quarter, we continued to buy high quality, investment grade bonds with
yields typically above the benchmark yield for a similar maturity and credit rating.
This is where carefully choosing bonds can consistently provide incremental potential
returns. We also purchased multiple investment grade preferreds that we think provide
attractive additional yield in excess of investment grade bond yields. Furthermore, a few
bonds matured or were redeemed by the issuers, and we also sold a few securities to
capture gains, reduce risk, and/or improve the overall risk / reward for the portfolio.
Fixed Income Bonus Feature:
Do not let a High Coupon deceive you --> Yield and Coupon are VERY different concepts
We also think it is worthwhile to remind investors that coupons and yields are often extremely
different. For example, if you own a 1-year bond maturing that has a 6% coupon and trades at
$105, you only net approximately 1% profit for the year, not 6%. Please see below for two detailed
examples. This simple example applies to the vast majority of investment grade bonds currently, as
almost all investment grade bonds are trading well above par.
Please let us know if you would benefit from a review of your non-ACM fixed income holdings.
We are confident many investors do not know how low the future yields are on their existing,
traditional investment grade bond portfolios. While these bonds have performed well during
the past decade and in 2020, the majority of the returns have already been realized (and are
now reflected in higher bond prices). Please see the table above which highlights the decline
in investment grade bond yields versus history.
2021 REVIEW AND OUTLOOK | Q1 P16Going forward, we are focusing on maintaining a portfolio of attractive, high quality
bonds and preferreds. As always, we will continue to monitor existing positions to
determine if we should move on to more attractive opportunities. We think it is
important that as investors we remain disciplined and extremely discerning when
purchasing new securities.
Coupon versus Yield: 2 Illustrative examples
Total profit = $ received -
Assumed Maturity Cash flow Total Coupon Redemption (Coupons + Par) (Price Paid) Price paid (Bond Price)
Examples Bond Price Coupon (in years) per yr. Payments value Total $ received Bond Price interest earned (profit) Interest /Year Yield
1 yr. 4% kind $103.00 4.00% 1 $4.00 $4.00 $100 $104.00 $103.00 $1.00 $1.00 0.98%
2 yr. 5% Bond $106.00 5.00% 2 $5.00 $10.00 $100 $110.00 $106.00 $4.00 $2.00 1.93%
Note: Yields are lower than the Interest / yr. because the Bond Price paid was >$100.
Global Dividend Composite Update
Global Growth Composite Update
International ADR Composite Update
Outlook
Our investment philosophy states “invest long term in attractively-valued,
conservatively-structured, competitively-advantaged dynamic companies with growing
free cash flow and honest, competent leadership”. We’ve had to sell some investments
which will no longer generate sufficient free cash flow in this new pandemic enveloped
world, but note most of our companies are doing relatively well. We’re also identifying
several new areas of opportunity in this environment and are excited about their
potential.
Portfolios: International ADR / Global Growth / Global Dividend
Fourth quarter momentum continued into the first quarter 2021 for foreign equities. The
benchmark results registered 3.49%, 5.14%, and 4.57%, respectively. The benchmarks
are the MSCI ACWI ex USA Index, MSCI ACWI IMI Index, and MSCI ACWI Index. (“ACWI”
stands for All Country World Index. IMI stands for investable market index which
includes small and mid-cap sized companies.) Net of fees, International ADR, Global
Growth, and Global Dividend portfolios returned 3.66%, 0.56%, and 3.80%, respectively.
International ADR outperformed its benchmark but the global strategies trailed due to
a lower allocation to the better performing cyclical U.S. large caps as well as the relative
performance drag from the larger allocation to higher quality companies in the global
strategies.
Foreign equities generally lagged U.S. results. Although an economic resurgence
appears on track for the world’s two largest economies, the U.S. and China, the recovery
speed for the remainder of the world remains stuck in low gear. Many areas of the
globe pursued premature opening policies leading to a resurgence of the disease and
are hampered by an agonizingly slow vaccine rollout. This is true in several emerging
markets with challenged public health capabilities such as Brazil, Peru, India, and the
Philippines, but also most of Europe including Western Europe which has advanced
2021 REVIEW AND OUTLOOK | Q1 P17healthcare services. Based on data provided by The European Surveillance System
or TESSy, rates of infection, hospitalization, and ICU admissions continue to increase
through the end of the quarter. Meanwhile, vaccine rollout sputters. The U.S. has given
at least one vaccination jab to more than 50% of the population, but only two foreign
countries with a population of 10 million or more report a comparable rollout rate – the
U.K. and Chile. Much of Europe remains in the teens while Latin America and Asia show
single-digit jab rates.
Benchmark Return Analysis
Continuing its leadership from the fourth quarter 2020, Energy (+20.52%) again posted
the strongest sector return in the global equity benchmark. Crude oil continues its climb
on economic recovery expectations and OPEC’s reticence to restore production levels.
Brent crude jumped from $51.80 to finish the quarter at $63.54. The intra-quarter high of
$71.38 was the highest since January 10, 2020. Financials (+12.69%) ranked second in
the sector performance rankings during the quarter. Interest rates rose globally, helping
push bank stocks (+17.27%) higher. English-speaking-country 10-year bond rates
showed some of the biggest increases for the three months including the U.S. (+82 basis
points), Canada (+88 basis points), U.K. (+65 basis points), Australia (+87 basis points),
and South Africa (+80 basis points). Most of Europe increased in the 20 to 30 basis point
range while key Asian countries remained relatively flat highlighted by China (+6 basis
points) and Japan (+10 basis points). Lagging sectors included the relatively defensive
Health Care (+0.86%) and Consumer Staples (+0.65%) sectors. The market believes
brightening economic prospects in the U.S. and China will eventually reach the rest of
the world. Thus, non-cyclically-geared sectors lagged for the three months.
Regionally, North America (+7.40%) registered the best return behind strong
performances by Canada (+8.61%) and the U.S. (+7.34%). Western Europe (+5.66%) and
Asia (+3.76%) followed with pandemic and corruption-racked South & Central America
(-6.27%) posting a negative return. Only Chile (+17.05%) managed a positive return in
the region due to the country’s better disease management and exposure to the
ramping copper price.
Other analysis factors include currency and company size. Currency detracted 2.80% to
non-U.S. equity returns in the first quarter 2021. More significant interest rate jumps by
U.S. bonds contributed to the dollar’s strength. The Japanese yen (-1.08%), euro
(-0.80%), and Swiss franc (-0.37%) accounted for most of the foreign currency loss.
Mid-sized (+7.57%) and large cap (+6.43%) companies in the global index recorded
significantly better returns compared to small companies (+1.21%) for the January
through March period.
International ADR Global Growth Global Dividend
Best Sector Energy (+18.18%) Energy (+13.67%) Energy (+22.71%)
Worst Sector Materials (-9.63%) Materials (-9.78%) Materials (-9.90%)
Best Country Thailand (+27.55%) Thailand (+27.55%) Thailand (+27.55%)
Worst County United Kingdom (-6.25%) United Kingdom (-9.04%) Canada (-17.62%)
Best Stock SITC International (+56.99%) Penumbra (+50.71%) Krungthai Card (+27.55%)
Worst Stock BYD Co (-34.42%) BYD Co (-34.42%) Kirkland Lake Gold (-17.62%)
2021 REVIEW AND OUTLOOK | Q1 P18Leading gainer SITC International jumped on skyrocketing freight rates. The Hong Kong-
based shipper benefits from the disruption of the regular flow of freight containers.
Also, SITC’s earnings outlook brightened with additional ships coming online to serve
the lucrative and global-growth-leading intra-Asia market. Medical device maker,
Penumbra, surged early in the quarter. As long-term fundamental investors we try to
avoid investments experiencing such heightened volatility, and believe the positive
price move ran ahead of fundamental improvement in the company’s earnings outlook.
Hence, we sold the position. Krungthai Card, a Thailand-based credit card company,
surged higher in January with several analysts (correctly in our opinion) predicting
faster loan growth combined with reduced marketing expenses in 2021. New position
BYD tumbled with the EV vehicle industry in the quarter. We agree many of the new
EV names have run up to prices far above levels justified by their fundamentals, but
believe BYD is a unique investment opportunity in the space. Shenzhen-based BYD
Company, unlike other electric vehicle makers including Tesla, already posts significant
profits from operations and generates propitious free cash flow. We believe BYD has
a stronger business model, since the company is unique in producing its own electric
batteries as well as the vehicle’s CPU or insulated gate bipolar transistor. With many
automakers suffering from lack of semiconductor supply, BYD’s ability to produce its
own silicon chips puts it in a unique position to gain market share as well as participate
in the growing demand for these specialized chips by other power-hungry industries like
high-speed trains and air conditioners. Canadian miner Kirkland Lake Gold reported
record 2020 earnings, but guided to flat production in 2021, and analysts wonder if the
company’s flagship Australian asset, its Fosterville mine, will experience production
decline and gold grade quality deterioration. While this is troublesome, the company’s
reputable management continues to drill more shafts in Fosterville believing more
discoveries are imminent. While this would be welcome, it’s not required to make
the company an attractive investment as KL’s Canada assets should experience good
production growth over the next decade.
Key Trades During the Quarter
For all three portfolios we sold Globe Telecom. Philippines-based Globe Telecom faces
intensifying competition as new operator, Dito Telecommunity Corporation, begins
operations. We’re concerned about market share loss and pricing pressures.
For Global Dividend and Global Growth, we sold Broadridge Financial Solutions.
Broadridge is a dominant company in the proxy and investor communication space
exhibiting excellent profitability and propitious free cash generation which we believe
will continue. However, it appears the company is facing structurally slower growth
going forward and we think there may be better opportunities in the Technology sector.
For Global Growth the investment returned 750.46% or 21.45% annualized since first
purchase in January 2010. The investment was added to Global Dividend in January
2020 and returned 29.16%.
For International ADR and Global Growth, we added BYD Company highlighted above.
For Global Dividend we added Pool Corporation.
For Global Growth we purchased Accolade, AtriCure, Evercore, and Exagen and sold
RealPage, PRA Healthcare, and World Fuel Services, in addition to Penumbra highlighted
above
2021 REVIEW AND OUTLOOK | Q1 P19Investment Professionals
Dr. Charles Lieberman Dr. JoAnne Feeney
CO-FOUNDER PARTNER
CHIEF INVESTMENT OFFICER PORTFOLIO MANAGER
Income with Growth Growth
Fixed Income Balanced
ACM Investment Committee ACM Investment Committee
David L. Ruff, CFA®
Kevin Kelly PORTFOLIO MANAGER
PORTFOLIO MANAGER
International Strategies
Fixed Income Small/Mid Cap
ACM Investment Committee ACM Investment Committee
David Lieberman, M.B.A. Paul Broughton, CFA®
PARTNER PORTFOLIO MANAGER
PORTFOLIO MANAGER
U.S. Dividend
International Strategies
Small/Mid Cap
ACM Investment Committee ACM Investment Committee
Randall T. Coleman, CFA® Kevin Strauss, CFA®, M.B.A
PORTFOLIO MANAGER PARTNER
PORTFOLIO MANAGER
Fixed Income
International Strategies Balanced
Small/Mid Cap U.S. Dividend
ACM Investment Committee ACM Investment Committee
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